Italys Benelli to invest $28mn in India

Italian motorcycle brand Benelli plans to invest at least $28 million (Rs 200 crore) in its India operations over the next two years as part of a strategy to enter the country's mass and electric two-wheeler segments.

Benelli, a fully-owned subsidiary of China's Qjian Jiang Group, has a marketing tie-up with Hyderabad's Mahavir Group. It sells five models in the 300cc to 600cc range, which are imported as knocked-down kits and assembled at a facility near Hyderabad.

The motorcycle maker, which can roll out 1.2 million motorcycles annually from its Chinese facility, is mulling setting up of a manufacturing facility in India. It will make the country its second export hub after China, Dante Bustos, global chief marketing officer at Benelli, said.

The company aims to gain a leadership position in the premium mid-weight motorcycle market in India. Vikas Jhabakh, MD of Benelli India, said Benelli is already a leader in the electric mobility space in China and it is only a matter of time before there is viability in the market for them to bring these products to India.

In India, Benelli plans to launch five more products in the premium segment this year while there are plans to introduce mass-market commuter motorcycles over the next two years. The company is evaluating the scale of production, the product mix, and the location for a manufacturing facility in India, he said.